Uber Drivers Forum banner
1 - 11 of 11 Posts

·
Registered
Joined
·
660 Posts
Discussion Starter · #1 ·
From what I'm understanding on Lyft, I had about $800 in gross fares and therefore, got a 1099-K. However, the $250 bonus for completing 75 trips will be tax free since it is under $600. Bonuses are on the 1099-MISC form. I had assumed that I would be paying taxes on $250 bonus as it would have been clumped in with the 1099-K. This is good news if I am correct that $250 will be tax-free. Am I correct?
 

·
Registered
Joined
·
5,572 Posts
From what I'm understanding on Lyft, I had about $800 in gross fares and therefore, got a 1099-K. However, the $250 bonus for completing 75 trips will be tax free since it is under $600. Bonuses are on the 1099-MISC form. I had assumed that I would be paying taxes on $250 bonus as it would have been clumped in with the 1099-K. This is good news if I am correct that $250 will be tax-free. Am I correct?
No. Tips are not on 1099 but you have to pay income taxes on them if you got any. The 250 is taxable. Now whether or not the irs knows about it or not is a different question.
 

·
Registered
Joined
·
660 Posts
Discussion Starter · #4 ·
No. Tips are not on 1099 but you have to pay income taxes on them if you got any. The 250 is taxable. Now whether or not the irs knows about it or not is a different question.
I think it goes on the 1099-MISC, which on the Lyft site said that there was none available. The Uber promos added to less than $400, but I did get a 1099-MISC for over $700. I'm not sure why. I've written to Uber, but no luck on clarification. Does anyone know what this is accounting for?

Unless I had $300 in promos in 2015 & $400 in 2016, the $300 in 2015 was not taxable but they rolled that into 2016.
 

·
Registered
Joined
·
214 Posts
I'll tell you this once....if it isnt cash, its taxable income there is a paper trail if a pax gives you a tip on the Lyft app...you have to claim that as income cause it was done on a credit card,,,,now if pax gave you cash then its a different its not taxable cause of no paper trail...
 

·
Registered
Joined
·
5,572 Posts
I'll tell you this once....if it isnt cash, its taxable income there is a paper trail if a pax gives you a tip on the Lyft app...you have to claim that as income cause it was done on a credit card,,,,now if pax gave you cash then its a different its not taxable cause of no paper trail...
yes cash tip is taxable.
 

·
Registered
Joined
·
214 Posts
yes cash tip is taxable.
A cash is not reported unless you claim it on your taxes and who is dumb about reporting a cash tips because cash has no paper trail (under Lyft or Uber everything is taxable except for cash tips and why do you think cabbies used to want cash payments)...duh I have never reported my cash tips to IRS and never will.. cause there is no proof that I rcvd a 'cash' tip from a pax. and if you want to make sure I'm right ask a Tax Professional if you have question
 

·
Registered
Joined
·
1,310 Posts
For Uber you are probably ok since the tips are so small if any, but if someone gets a lot of tips in cash and deposits them in their bank then that creates a paper trail so be careful with your advice. I worked once with authorities and they do use bank records to catch people who get paid in cash and don't report those amounts as income, although like I said for Uber it probably doesn't make a difference but don't take that as a blanket statement to not report.
 

·
Registered
Joined
·
5,572 Posts
A cash is not reported unless you claim it on your taxes and who is dumb about reporting a cash tips because cash has no paper trail (under Lyft or Uber everything is taxable except for cash tips and why do you think cabbies used to want cash payments)...duh I have never reported my cash tips to IRS and never will.. cause there is no proof that I rcvd a 'cash' tip from a pax. and if you want to make sure I'm right ask a Tax Professional if you have question
Not claiming cash tips is called tax evasion. Your tax professional will verify this. But hey it is your taxes you can file whatever numbers you want to. saying cash tips are not taxable is a false statement.
 

·
Registered
Joined
·
214 Posts
Not claiming cash tips is called tax evasion. Your tax professional will verify this. But hey it is your taxes you can file whatever numbers you want to. saying cash tips are not taxable is a false statement.
its also hard to prove too,if you dont deposit your tips which I dont then IRS cant prove it but i do have other income too (retirement)...not just uber
 
1 - 11 of 11 Posts
Top